If you are looking for life insurance for baby boomers, you are at the right place. Because there are many choices and so several factors to consider, an independent life insurance agent can make it easy for you.
Some people say a little knowledge is a dangerous thing. Others that a little is better than none. When it comes to an important decision like life insurance, knowledge is very important. Life insurance is intricate and involves protecting your family (or business, or estate), so be smart and use an independent agent to simplify the process.
Let's Begin at the Beginning
You need life insurance. You might know how much and for how long. You may not be sure of either or both. Talking to an agent can help you figure it out. Things to consider are:
- Who or what are you protecting? For this article we will discuss protecting your family.
- Do you have children? How old are they?
- Do you have a special needs child or grandchild or spouse?
- Do you need to consider college expense? Professional school expense?
- Does your spouse work or are you the sole provider? Do you both work?
- What will your family lose financially if you are gone?
- Do you have a mortgage to pay off?
- Would you leave behind debts?
- Can your family afford to pay for your final expenses?
- And whatever your personal situation needs to cover.
These are only some of the questions you need to consider. You need to know your goals for getting life insurance. Then your agent can help you find the right policy to fulfill your goals.
How Much Will Baby Boomer Life Insurance Cost?
The cost of your insurance will be determined by a number of factors including:
- How much insurance you buy.
- What is the policy length? Is it term insurance or permanent coverage?
- Your build (height and weight).
- Medical history.
- Current medications.
- Family medical history.
- And more.
An independent life insurance agent can help you determine your probable insurance rating which determines the price of a policy. Important note- ONLY the insurance company can give you an actual offer of coverage. An agent gives their best guess of your rating/price, based on their experience and what you tell them. Most people overestimate the cost of term life insurance.
It's important to tell your agent the truth when buying life insurance for baby boomers and anyone else. This way, they can present any unfavorable issues in the best light. The insurance company will probably find out and it's better to tell them first.
The insurance company will obtain information not available to your agent such as lab test results, doctor records and several database results before making a decision. Additionally, if the underwriter wants more information, they will ask for it.
For purposes of applying for insurance, you will use the rating your agent suggests. If we aren't sure, we have an in-house independent underwriter who can help us give you a better quote, and we use them often. You use your quote as a guideline price, understanding that the insurance carrier will give you an offer after reviewing all your information.
You should never be insurance poor, meaning you never should buy a policy that is more than you can comfortably afford. You may not have the option to get as much coverage as you would like, but any beneficiary will tell you, it’s better to have some help than none. Figure out what fits into your budget and make sure your agent knows so they show you what works. Once an insurance company gives you an approval, we have a rating and can accurately quote other face amounts or term limits to fit the policy into your budget.
The Best Way to Shop
Let your agent be your life insurance personal shopper. You can go online and get quotes, but if you aren’t including some of the information mentioned before, including your build, medical history, medications, family history, etc., you don’t really know if you will qualify for that price.
When you run a quote, you are limited to the insurance companies that the site offers. Your independent life insurance agent has access to many more companies than you can find on the internet. They can also screen the quote based on your build, medical issues, etc. They can show a list of carriers for the type of policy, amount and length of time that you want. Then and only then do you know that you are getting your best value.
Another consideration is that although you may be a preferred rating with some carriers, that may not be the case with others. Every insurance company has slightly different underwriting guidelines. We know that you want the best policy for the lowest price, we all do. Again, you must qualify for the coverage, and we will show you the carriers where we believe you will be approved.
There is no cost for using an agent, we are paid by the insurance companies. All rates are set and recorded with the state insurance departments. The cost is the same if you go direct (which most insurance companies don’t offer) or if you use an independent agent. The advantage of using an agent (especially an independent one) is that we have many carriers available to find you a good deal.
What Else Does an Agent Bring to the Table?
What happens if you get declined or approved at a poorer rating? An independent agent will be able to give you other options. You aren’t alone- they can tell you what options are available. As I mentioned, we have an in-house independent underwriter to help too. Depending on the situation, our underwriter may be able to speak to the insurance company underwriter and get you a better rating. Agents generally do not have access to insurance company underwriters. If that doesn't work, they may be able to get you some other offers.
Check with your agent to see what they do once your policy is in force. We want to be there to help you if you need to change your beneficiary or you move or you change banks. Anything that affects your insurance, we are happy to help.
The Bottom Line
If you have the right independent life insurance agent, you have an advocate in your corner. Baby boomer life insurance is an important part of your family's financial security. It should be treated as such. Having the right agent can help you make sure you get the best life insurance for your needs.